Over a quarter (27%) of Gen X (born between 1965-1980) are not confident that they will pay off their mortgage before age 67, Just Group has found.

The retirement specialist firm also revealed that a further 13% of Gen X firmly believe they won’t repay their mortgage before they reach the state pension age.

A further 14% also said they were unsure if they could.

Just Group found that there is a sharp divide between those who live in London and those living elsewhere in the UK, indicating the impact that paying higher house prices can make to mortgage repayment expectations.

The research revealed that double the number of London-based Gen X (26%) with a mortgage said they didn’t expect to repay their mortgage before 67, compared to the national average of 13%.

The retirement group also highlighted that the growing cost of borrowing appears to be contributing to these repayment fears, with nearly half (45%) of Gen X who have a mortgage saying it is taking them longer to pay it off than they had hoped.

The main reason for this was that a third (34%) said that they had needed to extend their mortgage term to reduce monthly payments.

A further third (32%) said they had to extend the term to pay for home improvements and almost a quarter (23%) said it was because of increased interest payments.

Group communications director at Just Group, Stephen Lowe said: "About three quarters of the Gen X cohort own their own homes but many are struggling to clear their mortgage within the expected time frame. This group find their finances stretched and are faced with the unenviable choice of either clearing the mortgage or saving for a pension.

"People's budgets are being squeezed as they juggle competing pressures. As a result, we are seeing growing anxiety among this demographic that many will approach retirement still carrying the burden of making their mortgage repayments."

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